Fewer Options Equal More Sales

As Costco fans, we watched a recent documentary by CNBC called, The Costco Craze.

It was interesting to see the reporter delve into all the reasons that Cosco is so successful with a loyal following.

The show focused on a few major points:

low prices

fostering a sense of discovery with unexpected, frequently changing items

limited (but carefully reviewed) selection

These are all reasons I love the giant wholesaler. It’s a good deal, and they have cool stuff that is high quality.

The area that I probably appreciate the most is the fact that Costco does narrow it down for me. Instead of 10 brands to choose from on a given item: there’s usually 1 or 2. The reporter pointed out that shoppers were delegating their selection process to Costco. I know I am.

The show shared some vivid stats that illustrate this point:

Grocery store: 400,000 items

Wal-Mart: 100,000 items

Cosco: 4,000 items

In a world where we are all overwhelmed, sometimes less selection is better.